BILL NUMBER: SB 664	CHAPTERED  10/10/99

	CHAPTER   729
	FILED WITH SECRETARY OF STATE   OCTOBER 10, 1999
	APPROVED BY GOVERNOR   OCTOBER 7, 1999
	PASSED THE SENATE   SEPTEMBER 10, 1999
	PASSED THE ASSEMBLY   SEPTEMBER 10, 1999
	AMENDED IN ASSEMBLY   SEPTEMBER 10, 1999
	AMENDED IN ASSEMBLY   SEPTEMBER 7, 1999
	AMENDED IN ASSEMBLY   SEPTEMBER 3, 1999
	AMENDED IN ASSEMBLY   SEPTEMBER 1, 1999
	AMENDED IN SENATE   AUGUST 19, 1999
	AMENDED IN SENATE   JULY 1, 1999
	AMENDED IN SENATE   MAY 28, 1999
	AMENDED IN SENATE   APRIL 27, 1999

INTRODUCED BY   Senator Alpert

                        FEBRUARY 24, 1999

   An act to amend Sections 120102.5 and 120265 of, and to add
Section 99400.7 to, the Public Utilities Code, and to amend Sections
30796.7 and 30796.10 of the Streets and Highways Code, relating to
transportation.



	LEGISLATIVE COUNSEL'S DIGEST


   SB 664, Alpert.  San Diego ferry service:  San Diego-Coronado
Bridge.
   (1) The Mills-Alquist-Deddeh Act specifies allowable claims for
local transportation funds that may be filed with the transportation
planning agency.
   This bill would allow cities within the County of San Diego to
file claims with the transportation planning agency to provide
commuter ferry service on San Diego Bay for the purpose of serving
peak period commute trips for pedestrians and bicycles, as specified.
  Because this would increase the level of services required of
transportation planning agencies, this bill would impose a
state-mandated local program.
   (2) Existing law creates the San Diego Metropolitan Transit
Development Board in San Diego County.  Provision is made, on an
annual basis and at the time of the annual apportionment, for an
assessment of each member jurisdiction based on a percentage of its
apportionment equal to the percentage of its 1983-84 fiscal year
apportionment claimed for support of regional transit services or 5%
of its annual apportionment, whichever is greater.
   The bill would delete a requirement in existing law that the
specified assessment formula remain in effect for a minimum of 3
fiscal years, would delete authority for the formula to be amended
after the expiration of those 3 years, would delete authority for a
specified regional transit advisory service to review the formula and
recommend appropriate changes to the board and the pertinent
jurisdictions, and, instead, would authorize the board to adopt and
amend, on an annual basis, an assessment formula for funding regional
services.  The bill would exempt this board action from the
application of the weighted vote procedures in existing law.  The
bill would require the board to consider the transit needs and
revenue for the next 5-year period including certain specific
factors.  The bill would prohibit the formula from providing for an
assessment for any city that is greater than 50% of that city's
annual apportionment for support of regional services.  The bill
would require the regional transit service advisory committee to
review, on an annual basis, the assessment formula and submit to the
board any recommended changes to the formula that are based on the
specified factors.
   The bill would delete a requirement in existing law for the board
to establish certain reserves at the request of specified cities or
the county.
   This bill would require the board, for the 1999-2000 fiscal year
only, to proportionately assess each jurisdiction within the board's
area, as described, for the costs of commuter ferry service with the
total aggregate amount assessed not to exceed $120,000.
   To the extent that these provisions would increase the level of
service required of the board or the regional transit service
advisory committee, the bill would impose a state-mandated local
program.
   (3) Existing law requires the revenue from any tolls imposed on
the San Diego-Coronado Bridge to be used first for expenses related
to the collection of tolls and operation of the bridge.
   This bill would specify that expenses related to the collection of
tolls include, but are not limited to, the installation and
operation of an automated toll collection system, if that system is
installed by the San Diego Association of Governments.  The bill
would make conforming changes.
  (4) The California Constitution requires the state to reimburse
local agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement, including the creation of a State Mandates Claims Fund
to pay the costs of mandates that do not exceed $1,000,000 statewide
and other procedures for claims whose statewide costs exceed
$1,000,000.
   This bill would provide that, if the Commission on State Mandates
determines that the bill contains costs mandated by the state,
reimbursement for those costs shall be made pursuant to these
statutory provisions.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 99400.7 is added to the Public Utilities Code,
to read:
   99400.7.  Notwithstanding Section 99232, cities within the County
of San Diego may file a claim under this article with the
transportation planning agency to provide commuter ferry service on
San Diego Bay for the purpose of serving peak period commute trips
for pedestrians and bicycles.  The commuter ferry service may be
located anywhere on San Diego Bay, but shall be consistent with the
regional transportation plan, shall serve employment centers and high
volume activity centers, and may be provided by contract with
operators, private entities operating under a franchise or license,
or nonprofit corporations organized pursuant to Division 2
(commencing with Section 9000) of Title 1 of the Corporations Code.

  SEC. 2.  Section 120102.5 of the Public Utilities Code is amended
to read:
   120102.5.  (a) A majority of the members of the board constitutes
a quorum for the transaction of business.  All official acts of the
board require the affirmative vote of the majority of the members of
the board.  However, after a vote of the members is taken, a weighted
vote may be called by any two members, at least one of whom is not a
City of San Diego representative.
   (b) In the case of a weighted vote, each of the four
representatives of the City of San Diego shall exercise 121/2
weighted votes, for a total of 50 votes.  The County of San Diego and
each city, other than the City of San Diego, shall, in total,
exercise 49 weighted votes to be apportioned annually by population.
The chairperson, if not chosen from the membership of the board,
shall exercise one weighted vote.
   (c) Approval under the weighted vote procedure requires the vote
of the representatives of not less than three jurisdictions
representing not less than 51 percent of the total weighted vote to
supersede the original action of the board.
   (d) The weighted vote procedure shall not be used on any matter of
purely intracity local service, unless it is the desire of the
affected city or jurisdiction.
   (e) The weighted vote procedure shall not be used for purposes of
subdivision (c) of Section 120265.
   (f) For purposes of subdivision (c), the population of the County
of San Diego is the population in the unincorporated area of the
county within the area of jurisdiction of the transit development
board.
   (g) The board shall adopt a policy and procedure to implement this
section.
  SEC. 2.5.  Section 120265 of the Public Utilities Code is amended
to read:
   120265.  (a) The board shall provide a system of regional transit
operating services and support activities including, but not limited
to, facilities, fare media, information, maintenance, marketing,
security, and signing for its area of jurisdiction, to be funded from
the regional transit fund which the board shall create.  The board
may provide the regional services directly, by contract with the San
Diego Transit Corporation, or by contract with any other provider of
services as it deems appropriate, and upon terms and conditions that
the board finds in its best interests.  The board shall complete an
economic feasibility study of competitive bidding for regional
transit service within 180 days from the date of acquisition of the
San Diego Transit Corporation and shall update the study at any time
the board deems appropriate to consider changed circumstances.  The
board shall adopt a policy for contract services to permit prices and
other factors to be compared and evaluated prior to negotiating any
contract for regional service.
   (b) The board shall determine the routes, fares, frequency of
service, and hours of operation of regional services.  The board
shall create a regional transit service advisory committee consisting
of a representative from each of the jurisdictions that contributes
to the regional transit funds from its apportionment as determined
pursuant to Section 99231.
   Periodic revisions to the regional route system may be made by the
board upon review by the regional transit service advisory committee
which shall meet on an as-needed basis, but not less than once a
year to review the annual budget and assessment for regional transit
services.
   (c) (1) The board may annually adopt and amend an assessment
formula for funding regional services.  The board shall consider the
transit needs and revenues for the next five-year period including
the following:
   (A) Provision of specialized services, as required under the
federal Americans with Disabilities Act of 1990 (Public Law 101-336).

   (B) Provision of resources adequate for maintaining,
rehabilitating, and replacing capital facilities and equipment,
including, but not limited to, transit centers and rolling stock.
   (C) Identification of matching funds sufficient for avoiding loss
of available state and federal funds.
   (D) Development of an appropriate balance between local and
regional transit services.
   (E) Development of the most efficient and effective use of all
available local, regional, state, and federal funds, including, but
not limited to, funds provided under this division.
   (F) Recognition of the needs for the operation of local transit
services of the cities and county and any anticipated changes in
previous revenue sources for those services, including bridge tolls.

   (G) Recognition of the size of the population of each member
jurisdiction.
   (2) The formula adopted or amended under paragraph (1) may not
provide for an assessment for any city that is greater than 50
percent of that city's annual apportionment for support of regional
services.
   (3) The regional transit service advisory committee created under
subdivision (b) shall review, on an annual basis, the assessment
formula adopted or amended under paragraph (1) and shall submit to
the board any recommended changes to the formula that are based on
the factors listed in paragraph (1).
   (d)  The board may enter into agreements with any local
jurisdiction to provide local transit services by the means and upon
terms and conditions as may be mutually agreed upon.
   (e)  The acquisition of the San Diego Transit Corporation by the
board shall not create or impose any financial liability upon the
County of San Diego or the cities within the board's area of
jurisdiction for any obligations and liabilities of the corporation
by virtue of their membership on the board.
  SEC. 3.  Section 30796.7 of the Streets and Highways Code is
amended to read:
   30796.7.  (a) Notwithstanding any other provision of law, the San
Diego Association of Governments, on behalf of the state, may impose
a toll on vehicles crossing the San Diego-Coronado Bridge.  The toll
shall be established by the association after conducting at least one
public hearing.
   (b) The authority of the commission relative to tolls on the
bridge is hereby transferred to the San Diego Association of
Governments.  All tolls on the bridge shall be at the rates
established by the San Diego Association of Governments, except that
at no time shall the rate of toll for class 1 vehicles exceed one
dollar and fifty cents ($1.50) per vehicle.
   (c) (1) The revenues from any tolls imposed on the bridge shall be
used first for expenses related to the collection of tolls,
including, but not limited to, the installation and operation of an
automated toll collection system, if that system is installed by the
association, and operation of the bridge, including, but not limited
to, reimbursement for any operating and retrofitting costs and,
second, for improvements to the bridge and its approaches.  Tolls
shall be established at an amount which will generate revenue
sufficient to meet the requirements set forth in this paragraph, as
determined by the department.  Maintenance of the bridge shall be
funded by the state under Section 188.4.
   (2) The revenues from any tolls imposed on the bridge may also be
used for costs incurred by the San Diego Association of Governments
in administering this section and for any of the following:
   (A) Transportation services that either increase the capacity of
the bridge and its approaches or reduce the demand for travel in the
transportation corridor that includes the bridge.
   (B) Alternative forms of transportation, within the transportation
corridor that includes the bridge, that reduce congestion and air
pollution, including, but not limited to, ferry service and public
transit.
   (C) Capital improvements and related expenditures within the
transportation corridor for construction and maintenance of bikeways.

   (d) For the purposes of this section, "transportation corridor"
means the San Diego-Coronado Bridge and its approaches which extend
from Route 5 in the City of San Diego to the North Island Naval Air
Station via Route 282, and to the Naval Amphibious Base via Route 75
in the City of Coronado.
   (e) All money deposited in the San Diego-Coronado Toll Bridge
Revenue Fund prior to March 26, 1992, and not expended, encumbered,
or programmed before January 1, 1994, is appropriated to the
Controller for allocation to the San Diego Association of Governments
for the purposes of paragraph (2) of subdivision (c).
   (f) The San Diego Association of Governments shall include in the
regional transportation improvement program, and every update
thereof, an expenditure plan specifying the projects and programs
that are to be funded with toll revenues.
   (g) If the San Diego Association of Governments, on behalf of the
state, imposes tolls pursuant to subdivision (a), it shall reimburse
the department for costs incurred by the department in operating the
bridge, collecting tolls, and performing other related services.  The
association and the department shall enter into an agreement which
provides for the full reimbursement of the department for all
operating costs.
   (h) The San Diego Association of Governments shall prepare an
annual audit of expenditures that are funded with toll revenues.  The
audit shall be funded solely with toll revenues and shall not
include expenditures made by the department.  The association shall
review the annual financial report on state-owned toll bridges that
is prepared by the department for revenues collected under this
section.
  SEC. 4.  Section 30796.10 of the Streets and Highways Code is
amended to read:
   30796.10.  (a) The San Diego Association of Governments may issue
bonds payable from the revenues derived from the tolls imposed on the
bridge.  The bonds may be issued by the San Diego Association of
Governments at any time, and from time to time payable from the
revenues from the tolls.  The bonds shall be referred to as "toll
bridge revenue bonds."  The association shall be an instrumentality
of the state for the purposes of those issuances.
   (b) The revenues from the tolls on the bridge shall be subject to
a statutory lien in favor of the bondholders to secure all amounts
due on the bonds and in favor of any provider of credit enhancement
for the bonds to secure all amounts due to the provider with respect
to those bonds.  The lien shall immediately attach to the toll
revenues and be effective, binding, and enforceable against the San
Diego Association of Governments, its successors, creditors, and all
others asserting the rights therein, irrespective of whether those
parties have notice of the lien and without the need for any physical
delivery, recordation, filing, or further act.  The toll revenues
shall remain subject to the lien until all bonds are paid in full or
provisions are made therefor.  The bridge shall not become a free
public bridge until that time.
   (c) The liens on toll revenues created by this section shall be
subject to expenditures for the collection of tolls, if those
expenditures are not otherwise provided for by statute, including,
but not limited to, expenditures relating to the installation and
operation of an automated toll collection system, if that system is
installed by the association, but shall have priority over the use of
any of the toll revenues for improvements undertaken pursuant to the
authorization contained in subdivision (c) of Section 30796.7.
   (d) Toll bridge revenue bonds shall be issued pursuant to a
resolution adopted at any time, and from time to time, by the San
Diego Association of Governments by a majority vote of the governing
board of the association.
   The San Diego Association of Governments may from time to time,
issue bonds in accordance with the Revenue Bond Law of 1941 (Chapter
6 (commencing with Section 54300) of Part 1 of Division 2 of Title 5
of the Government Code), for the purpose of constructing, improving,
or equipping the bridge, or for any of the purposes authorized by
Section 30796.7 for the expenditure of toll revenues.  Operation of
the bridge shall constitute an "enterprise" within the meaning of
Section 54309 of the Government Code, and the San Diego Association
of Governments shall constitute a "local agency" within the meaning
of Section 54307 of the Government Code.  Article 3 (commencing with
Section 54380) of Chapter 6 of Part 1 of Division 2 of Title 5 of the
Government Code shall not apply to the issuance and sale of bonds
pursuant to this section.  Instead, the San Diego Association of
Governments shall authorize the issuance of bonds by resolution,
which resolution shall specify all of the following:
   (1) The purposes for which the bonds are to be issued.
   (2) The maximum principal amount of the bonds.
   (3) The maximum term for the bonds.
   (e) The maximum rate of interest to be payable upon the bond which
interest rates shall not exceed the maximum rate specified in
Section 53531 of the Government Code.  The rate may be either fixed
or variable and shall be payable at the times and in the manner
specified in the resolution.
   (f) Interest on any bonds issued pursuant to this section shall at
all times be free from state personal income tax and corporate
income tax.
   (g) Any bonds issued pursuant to this section are a legal
investment for all trust funds; for the funds of insurance companies,
commercial and savings banks, and trust companies; and for state
school funds.  Whenever any money or funds may, by any law now or
hereafter enacted, be invested in bonds of cities, counties, school
districts, or other districts within the state, those funds may be
invested in the bonds issued pursuant to this section, and whenever
bonds of cities, counties, school districts, or other districts
within this state may, by any law now or hereafter enacted, be used
as security for the performance of any act or the deposit of any
public money, the bonds issued pursuant to this section may be so
used.  The provisions of this section are in addition to all other
laws relating to legal investments and shall be controlling as the
latest expression of the Legislature with respect thereto.
   (h) The State of California pledges and agrees with the holders of
the bonds issued pursuant to this chapter, and with those parties
who may enter into contracts with the San Diego Association of
Governments pursuant to the provisions of this chapter, that the
state will not limit, alter, or restrict the rights hereby vested in
the San Diego Association of Governments to finance the toll bridge
improvements and other projects and programs authorized by this
chapter.  The State of California pledges and agrees not to impair
the terms of any agreements made with the holders of bonds, and with
the parties who may enter into contracts with the San Diego
Association of Governments pursuant to this chapter, and pledges and
agrees not to impair the rights or remedies of the holders of any
revenue bonds or any parties until the bonds, together with interest,
are fully paid and discharged and any contracts are fully performed
on the part of the San Diego Association of Governments.
   (i) The San Diego Association of Governments may include the
pledges made under this section in its revenue bonds.
  SEC. 5.  For the 1999-2000 fiscal year only, each jurisdiction
within the San Diego Metropolitan Transit Development Board area, as
described in Section 120054 of the Public Utilities Code, shall be
assessed by the board proportionately for the cost of commuter ferry
service with the total aggregate amount assessed not to exceed one
hundred twenty thousand dollars ($120,000).  The board shall
determine the specific amount of the assessment for each jurisdiction
and claim that amount.
  SEC. 6.  Notwithstanding Section 17610 of the Government Code, if
the Commission on State Mandates determines that this act contains
costs mandated by the state, reimbursement to local agencies and
school districts for those costs shall be made pursuant to Part 7
(commencing with Section 17500) of Division 4 of Title 2 of the
Government Code.  If the statewide cost of the claim for
reimbursement does not exceed one million dollars ($1,000,000),
reimbursement shall be made from the State Mandates Claims Fund.
